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Describe the Accounting Equation.

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Initially when a business enterprise starts operating, it owns property inform of assets that are equivalent to the start up capital. Later on after continuance in the business, obligations inform of liabilities are incurred hence the equation changes. The total assets are now equivalent to the capital plus the liabilities in the business.
ASSETS = LIABILITIES + CAPITAL

The accounting equation is summarized in the balance sheet as illustrated below;

Kavungya answered the question on August 17, 2021 at 07:09

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Describe the Accounting Equation.

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